Kingsway Financial Services (NYSE:KWY) Posts Earnings Results

Kingsway Financial Services (NYSE:KWY) released its quarterly earnings data on Thursday. The company reported ($0.10) earnings per share for the quarter, FiscalAI reports. The business had revenue of $38.85 million during the quarter. Kingsway Financial Services had a negative net margin of 6.69% and a negative return on equity of 61.62%.

Here are the key takeaways from Kingsway Financial Services’ conference call:

• Portfolio EBITDA topped $6 million, up 29% year over year, while reported organic segment revenue and adjusted EBITDA grew about 8% and 54%, respectively. Management cautioned that the profit growth was unusually strong and expects results to normalize over time toward its long-term double-digit growth target.
• KSX adjusted EBITDA rose 24.5% to $3.3 million, and Extended Warranty adjusted EBITDA increased to $1.4 million; excluding the sold Trinity business, Extended Warranty revenue grew 5.9%. Cash from operations was $4.1 million, and net debt declined to $60.3 million from $62.4 million at year-end 2025.
• Consolidated net loss widened to $3.2 million from $2.4 million, while consolidated adjusted EBITDA was $2.0 million versus $2.1 million a year earlier. Results included a $900,000 Argo investment-value decrease and about $600,000 in non-cash revenue re-deferrals; management said segment profitability would have been broadly in line with Q2 absent the re-deferrals.
• Performance varied across the portfolio: Penn PWI, Kingsway Skilled Trades, and SNS were highlighted for improvement, while DDI remained a detractor as it invests ahead of anticipated business implementations. Management expects DDI’s investments to support better results in 2027.
• Image Solutions completed its acquisition of Romeo Computer Company using financing at the subsidiary level, which management described as progress toward self-funding acquisition platforms. Kingsway’s deal pipeline remains active, though the company now expects to complete two deals this year rather than three and aims to return to three to five deals in 2027.

Kingsway Financial Services Stock Down 16.2%

Shares of NYSE:KWY traded down $1.55 during mid-day trading on Friday, hitting $8.01. 194,542 shares of the company traded hands, compared to its average volume of 38,914. The stock has a 50-day moving average price of $9.65 and a two-hundred day moving average price of $10.57. Kingsway Financial Services has a 12-month low of $7.93 and a 12-month high of $14.35. The stock has a market cap of $231.73 million, a P/E ratio of -26.70 and a beta of 0.25. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 4.39.

Analyst Ratings Changes

Separately, Weiss Ratings raised shares of Kingsway Financial Services from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, October 30th. One analyst has rated the stock with a Sell rating. According to data from MarketBeat, the stock presently has a consensus rating of “Sell”.

Insiders Place Their Bets

In related news, Director Joshua Horowitz acquired 2,717 shares of the company’s stock in a transaction on Monday, September 28th. The shares were acquired at an average cost of $9.28 per share, for a total transaction of $25,213.76. Following the purchase, the director owned 383,820 shares in the company, valued at approximately $3,561,849.60. The trade was a 0.71% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Joseph Stilwell sold 100,000 shares of the firm’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $10.00, for a total value of $1,000,000.00. Following the transaction, the director owned 267,018 shares in the company, valued at approximately $2,670,180. This trade represents a 27.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders purchased a total of 14,311 shares of company stock valued at $138,604 over the last three months. 41.41% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KWY. Russell Investments Group Ltd. lifted its position in shares of Kingsway Financial Services by 27.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 10,465 shares of the company’s stock worth $99,000 after buying an additional 2,240 shares in the last quarter. State Street Corp bought a new position in shares of Kingsway Financial Services in the second quarter valued at approximately $3,105,000. Squarepoint Ops LLC purchased a new stake in shares of Kingsway Financial Services during the second quarter valued at approximately $791,000. Citadel Advisors LLC purchased a new stake in shares of Kingsway Financial Services during the second quarter valued at approximately $1,197,000. Finally, Bank of America Corp DE increased its position in shares of Kingsway Financial Services by 6.7% during the first quarter. Bank of America Corp DE now owns 46,605 shares of the company’s stock valued at $486,000 after acquiring an additional 2,923 shares during the last quarter. 72.38% of the stock is currently owned by hedge funds and other institutional investors.

About Kingsway Financial Services

Kingsway Financial Services Inc (NYSE:KWY) is a Canadian-based holding company that owns and operates businesses in the specialty insurance and insurance-services sectors. Its portfolio includes companies providing specialty insurance products, extended warranty programs, and related administrative and claims services.

Historically, Kingsway operated primarily as a specialty insurance provider, including nonstandard automobile insurance businesses in the United States and Canada. The company has since focused on managing and developing a diversified group of insurance and non-insurance subsidiaries, with operations serving customers principally in North America.

Kingsway was founded in 1989 and is headquartered in Toronto, Ontario.